Consolidation(redirected from consolidative)
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Related to consolidative: consolidate, consolidating
The combining of two or more firms to form an entirely new entity.
A type of merger in which two or more companies create an entirely new corporate entity and transfer all their assets and liabilities to the new entity. The former companies may continue to exist on paper, but they have no assets or liabilities. For example, the lawyers for the consolidating companies may go the secretary of state and form a new limited liability company (usually by paying a fee of $50 or so). After this is done, all assets and liabilities are given to the new LLC.
A combination of two or more firms into a completely new company. Assets and liabilities of the firms are absorbed by the new company. Compare merger.